Decision details

RESOLVED:

That Cabinet makes the following recommendations to Council on 5 February 2019. 

Cabinet recommends to Council to note the following important features of the revenue and capital budget

1.         The Executive Director of Finance’s statutory conclusions in his Section 25 statement.

Proposed budget: Cabinet recommendations to Council for the revenue and capital budgets

2.    Approve the net revenue budget requirement be set at £886.1 million (net cost of services after service specific government grants) for 2019/20 (Annex 6 of the submitted report), subject to confirmation of the Final Local Government Financial Settlement

3.    Approve the total council tax funding requirement be set at £731.5 million for 2019/20. This is an increase in the level of the council tax of 2.99% (Annex 6 of the submitted report).

4.     Notes that for the purpose of section 52ZB of the Local Government Finance Act 1992, the council formally determines that the increase in council tax is not such as to trigger a referendum.

5.         Set the Surrey County Council precept for Band D council tax at £1,453.50, which represents a 2.99% up-lift. This is a rise of 81p a week from 2018/19’s precept of £1,411.29. This includes £102.39 for the Adult Social Care Precept, which remains at the same rate as last year. A full list of bands is as follows:

6.         Approve the Flexible Use of Capital Receipts Strategy for 2019/20 to meet the statutory guidelines for the use of capital receipts to fund the transformation and reform of services (Annex 8 of the submitted report)

7.         Approve the application of a further £7.2 million in the current 2018/19 financial year to fund the transformation under the capital receipt flexibilities strategy (Annex 8 of the submitted report).

8.         Approve the use of £16.3 million in the 2019/20 financial year, to fund the transformation under the capital receipt flexibilities strategy (Annex 8 of the submitted report).

9.         That the underlying balance on the general fund remains set at £21.3 million as at 1 April 2019.

10.      Approve the Total Schools Budget of £492.9 million to meet the council’s statutory requirement on schools funding. (Annex 6 of the submitted report).

11.      Approve the overall indicative budget envelopes for Executive Directorates and individual services for the 2019/20 budget (Annex 6 of the submitted report).

12.      Note the indicative budget envelopes for 2020-24 (Annex 6 of the submitted report).

13.      Approve £413.8 million indicative five year capital programme, with £129.2 million capital investment in 2019/20 (Annex 6 of the submitted report).

Capital Strategy: Cabinet recommendations to Council:

14.      The Capital Strategy for 2019-24 (Annex 9 of the submitted report)

15.      The policy for making a prudent level of revenue provision for the repayment of debt (the Minimum Revenue Provisions policy) (Annex 9A of the submitted report)

Reasons for decision

Council will meet on 5 February 2019 to agree a budget and set the council tax precept for 2019/20. Cabinet must recommend a budget to Council to consider at this meeting.

The budget directs available resources to support the achievement of the council’s ambitions and priorities in the Vision and the Organisation Strategy. 

In particular, the budget proposals reflect the Vision ambition to ensure no one in Surrey is left behind. We know, as documented in the evidence base compiled to inform the 2030 Vision, that some residents experience a poorer quality of life than their neighbours - we will focus the resources we have available on actions that best support the most vulnerable people in communities, and those who do not have the means or resources to help themselves.

Prioritising spend in the current context of funding constraints and increased demands has necessitated the redirection of some funding from universal services and provision to targeted services and this is reflected in proposals for service transformation articulated in the accompanying Part A report Transformation Proposals – Delivering Better Services for Residents Cabinet report of 29 January 2019. The Part A report also details changes to services that include stopping some services we are not statutorily required to provide.

The budget will also support the delivery of the major transformational changes that are required to ensure that the council can improve priority outcomes for residents while managing growing demands for services and ensuring future financial sustainably. 

Following the confirmation of the Council Tax and Business rates bases and collection fund balances by Surrey Borough and Districts, the total council tax to be collected will be £731.506m, an increase of £206,000. In addition, business rates receipts will increase by £77,000.

These changes will be reflected in the papers for County Council on 5 February.